Bid adieu to Bharat’s Ratna Tata

Syllabus:

  • GS 3: Indian Economy

Why in the News?

Veteran industrialist Ratan Tata, former chairman of the Tata group, died at the age of 86 in Mumbai. His incredible legacy of ethical leadership and philanthropy will inspire future generations.

Bid adieu to Bharat’s Ratna Tata

Introduction

  • Ratan Tata, one of India’s most respected business leaders died at the age of 86 at Breach Candy Hospital in Mumbai.
  • As Chairman of the Tata Group, Ratan Tata left an impressive legacy that transcended business and industry.
  • Built on ethical leadership, innovative business practices and widespread philanthropy, his life inspired countless individuals around the world.
  • His contributions shaped the industrial landscape of modern India, while invaluable way left an indelible mark on the corporate world.

Early Childhood and Family

  • Ratan Tata was born on 28 December 1937 in a prominent and illustrious family.
  • The Tata family was already well established in the Indian business world and the Tata Group was one of the most respected groups in the country.
  • Ratan tata was born to Naval Tata and Sooni Tata.
  • However, his parents divorced when he was only 10 years old, and he was raised by his grandmother, Mrs. Navjabai Tata, who played a key role in shaping his personality and value system.

Education

  • Ratan Tata’s education further shaped his mind.
  • He studied at the Cathedral & John Connon School in Mumbai, after which he went on to university at Cornell, where he earned a degree in architecture.
  • He later attended an advanced business management program at Harvard Business School.
  • Her global education exposed him to different perspectives and helped shape her new approach to business.

Joined Tata group

  • The Tatas faced challenges when Ratan Tata joined.
  • In 1962, he started working on the Tata Steel shop floor in Jamshedpur.
  • His humble beginnings reflected his belief that one must understand the basics of a company before assuming a leadership position.
  • Working in various departments within the group gave him experience and taught him the basics of various businesses.
  • Ratan Tata who succeeded J.R.D. Tata as the Chairman of the Tata Group in
  • At that time the Tata Group had several businesses with relatively loose management controls.
  • Consolidating a vast empire and turning it into an efficient and well-managed corporation was one of his first and greatest tasks.
  • Under his leadership, the group experienced a transformation, that made them a household name.

Expansion beyond India

  • Remembered for his visionary leadership, Ratan Tata took the Tata Group beyond Indian shores.
  • His notable business decisions included acquiring international companies, propelling the Tata Group into global markets.
  • Tata Tea: In 2000, Tata Tea (now Tata Global Beverages) acquired UK-based Tetley Tea, one of the first major acquisitions by an overseas Indian company.
  • Tata Steel: This was followed by the acquisition of European steel giant Corus by Tata Steel in 2007, and the acquisition of Jaguar Land Rover (JLR) by Tata Motors in 2008.
  • This not only expanded global reach of the Tata Group but also showed Ratan tata’s courage and ability to take calculated risk.
  • Over time, these acquisitions led by Ratan Tata turned into a profitable endeavor despite initial criticism, especially during the recession.
  • His business plan emphasised on long-term sustainability as opposed to short-term profitability.
  • Tata Group flourished under his leadership, with operations in more than 100 countries across the globe and revenues of over $100 billion.

Ethics in Business

  • Ratan Tata’s strong commitment to ethical leadership and corporate governance had a tremendous impact on business management.
  • Holding a high standard of integrity, he ensured that decisions were made fairly, transparently and ethically.
  • Encouraged professionalism among team members through an internal corporate governance process was strongly driven by the Tata Group being perceived as a value-based company.
  • Ratan Tata encouraged the employees to contribute to the success of the company by empowering them at all levels through their inclusive leadership style.
  • he famously said “I don’t believe in taking right decisions,” I make decisions and then make them right,” he said, demonstrating his proactive style of leadership.

Social welfare and Philanthropic efforts

Healthcare

  • Supporting programs in mental health, reproductive and child health, and the diagnosis and treatment of diseases including cancer, malaria and tuberculosis,
  • Ratan Tata had a profound impact on the Indian healthcare industry He was the founder of the Tata Medical Center in Kolkata
  • He funded research into Alzheimer’s and other diseases.

Support Startups

  • To encourage innovation and entrepreneurship, Tata has supported more than 50 businesses, such as Lenskart, Paytm, Ola Electric Mobility and Upstocks.

Rural development

  • His philanthropic efforts included the Transformation of Rural India Initiative (TRI), in partnership with NGOs and governments aimed at reducing poverty.

Disaster Relief

  • In addition to providing relief after natural disasters, it favoured the construction of hospitals and schools in rural areas.
  • Ratan Tata set up the Taj Public Service Welfare Trust just after the 2008 Mumbai attacks as a quick response to the crisis.
  • During the Covid-19 pandemic in 2020, he donated ₹500 crore, for which he gained immense popularity.

Global initiatives

  • Ratan Tata was a global philanthropist who gave $50 million to Harvard Business School and participated in numerous international boards in support of social welfare and education.

Push for Innovation

  • Ratan Tata’s vision went beyond traditional business models and placed greater emphasis on innovation and research.
  • He encouraged innovation, creating breakthroughs and innovations that made the company a leader in many industries.
  • Tata Nano was an impressive project that sought to give the most cheapest car in the world a decent ride.
  • Despite market challenges, it reflected Tata’s progressive thinking.
  • Additionally, he established Tata Consultancy Services (TCS) as a pioneer in the IT world in recognition of the growing importance of technology.

Legacy beyond business

  • Ratan Tata’s legacy extends beyond the financial success of the Tata Group, that includes the values ​​and ethical standards he has set for corporate India.
  • He redefined business leadership by showing that profit and a strong moral compass can coexist.
  • Under his leadership, the Tata Group became a benchmark for corporate social responsibility through emphasis on ethical practices, philanthropy and community service.
  • Even after Tata retired as chairman in 2012, he continued to contribute philanthropy, he encouraged youth in entrepreneurship and nation building.

Conclusion

While Ratan Tata’s death marked the end of an era in Indian business, his legacy of ethics, innovation and philanthropy will inspire future generations to use business as a force for good.

Source: Livemint

Mains Practice Question:

Discuss how Ratan Tata’s approach to ethical leadership influenced corporate governance in India. Assess the importance of his contribution to the wider business environment in India.